Brazil’s Real May Get Boost From BCB’s Zero-Swaps Goal: CA
Source: BFW (Bloomberg First Word)
People
Vladimir Caramaschi (Credit Agricole Brasil SA DTVM/Brazil)
Ilan Goldfajn (Banco Central do Brasil)
Michel Temer (Federative Republic of Brazil)
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UUID: 7947283
(Bloomberg) -- Central bank President Goldfajn’s aim to reduce its stock of swaps to zero from ~$60b may be a bullish rather than bearish signal for BRL, Vladimir Caramaschi, strategist at Credit Agricole Indosuez, says in a phone interview.
Alert: HALISTER1- BCB’s signal reinforces view the bank’s goal is only to cut swaps holdings, not to interfere in the FX rate, Caramaschi says
- Recent BRL gains show combined impact of external low- rates post-Brexit scenario with local optimism on reforms to be held by acting President Temer
- Reports on expected election of new Lower House president aren’t concerning for markets; while PMDB’s Castro could be more risky for Temer plans, the more pro-government Rosso and Maia are favorites to win
- NOTE: BCB’s goal was one of the remarks made by Goldfajn in a interview to FT; BCB’s head also said he could rely more on Brazil’s foreign exchange reserves to provide confidence to the markets
Source: BFW (Bloomberg First Word)
People
Vladimir Caramaschi (Credit Agricole Brasil SA DTVM/Brazil)
Ilan Goldfajn (Banco Central do Brasil)
Michel Temer (Federative Republic of Brazil)
To de-activate this alert, click here
UUID: 7947283